The new Tim Hortons credit card, offered by Neo Financial, has entered the Canadian credit card market, surprising many with its unique offerings. While its predecessor from CIBC was lackluster, this new card brings some interesting features to the table. Let’s dive into the specifics and see if it holds its ground against other no-fee cards.
Understanding the Tim Hortons Credit Card
The Tim Hortons credit card is free to own, with no annual fees, making it accessible for many Canadians. However, what truly sets it apart is its rewards system. The card offers 15 points per dollar spent at Tim Hortons, 5 points per dollar on gas, groceries, and transit, and 1 point per $2 spent on all other purchases.
Points on Purchases
For avid Tim Hortons fans, the 15 points per dollar spent is a significant draw. This high return is particularly appealing for those who frequent the coffee chain. In contrast, the 5 points per dollar on gas, groceries, and transit provide a decent return, albeit not as impressive as some cash back cards. The 1 point per $2 spent on all else translates to a mere 0.5 points per dollar, which is notably lower than most competitors.
Decoding the Value of Points
The real question is, how much are these points worth? Neither Neo Financial nor Tim Hortons explicitly state the value of each point. However, by analyzing the redemption options at Tim Hortons, a clearer picture emerges.
For instance, 300 points can be redeemed for a cookie, donut, or hash brown, valued between $1.50 and $2. This translates to a maximum value of 0.67 cents per point. As we move up the redemption ladder, the value slightly decreases, with 400 points for a coffee or tea yielding about 0.63 cents per point.
Redemption Tiers
- 300 points: Cookie, donut, or hash brown (0.67 cents/point)
- 400 points: Coffee, tea, or similar (0.63 cents/point)
- 600 points: Hot chocolate or iced coffee (0.58 cents/point)
- 800 points: Tim bits or yogurt (0.63 cents/point)
- 1,000 points: Breakfast sandwich or soup (0.55 cents/point)
- 1,300 points: Farmers wrap or sandwich (0.62 cents/point)
- 1,800 points: Loaded bowl or wrap (0.56 cents/point)
Overall, the best value is achieved with lower-tier redemptions like donuts and hash browns. This means that frequenting Tim Hortons can offer significant returns on these smaller items.
Comparing to Other No-Fee Cards
When stacked against other no-fee cards, the Tim Hortons credit card offers a mixed bag of benefits. The 10% value back at Tim Hortons is a standout feature, unmatched by most competitors. However, the 3.3% value back on gas, groceries, and transit, while decent, falls short when compared to cards like the BMO Cash Back Mastercard, which offers 3% actual cash back on groceries.
For gas purchases, the card is competitive, especially against the CIBC Costco Mastercard, which offers 3% back at Costco gas stations only. However, for all other purchases, the 0.3% value back is disappointingly low, making it less attractive for general use.
Is the Tim Hortons Credit Card Worth It?
For regular Tim Hortons patrons, this card is undoubtedly worth considering for the 10% back on purchases at the coffee chain. It’s a compelling reason to keep the card in your wallet if you’re a frequent visitor.
However, for broader spending, particularly outside gas, groceries, and transit, the card’s value diminishes. Most other no-fee cards offer better returns, making them more suitable for general expenses.
Final Thoughts
The Tim Hortons credit card is a niche offering, ideal for those who regularly visit Tim Hortons and wish to maximize their rewards from the coffee chain. Its performance in other categories is average, and it lags behind in general spending rewards.
If you’re considering this card, focus on using it primarily for Tim Hortons purchases and potentially for gas and groceries if you don’t have a better option. For everything else, other cards will likely offer better value.
Overall, the Tim Hortons credit card is a decent addition for loyal customers but falls short as a comprehensive rewards card for all spending.
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